BOCHK leverages RMB business advantages to support high-quality Belt and Road cooperation
The lender tailors renminbi services to support outbound Chinese enterprises and global supply chain expansion
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Bank of China (Hong Kong) (BOCHK), the Banking Partner of September’s Belt and Road Summit, is dedicated to promoting cross-border financial cooperation and supporting high-quality projects across key Belt and Road markets. Leveraging its RMB business advantages, BOCHK positions itself as a one-stop cross-border partner for firms seeking to price, settle and finance trade in RMB while accelerating international expansion.
The Bank’s offering focuses on RMB clearing services, integrated cross-border enterprise solutions and a suite of green finance tools designed to make sustainability-linked initiatives more bankable.
Co-organised by the Hong Kong SAR Government and the Hong Kong Trade Development Council (HKTDC), the two-day summit returns to the Hong Kong Convention and Exhibition Centre (HKCEC) on September 10-11.
Positioned as a premier platform, the event brings together senior officials, international institutions and business leaders to transform policy dialogue into actionable business opportunities across the Belt and Road footprint.
BOCHK has launched the “RMB Trade Service Solution Series”, a comprehensive offering of end-to-end trade services that support enterprises across various industries, regions and trade patterns at different stages of global expansion.
The Series guides enterprises through the entire business chain, from factory to port to buyer, addressing needs in enterprises’ business flow and enhancing the working capital efficiency by ensuring currency alignment and more integrated settlement procedures.
As cross-border RMB usage becomes increasingly widespread, demand for RMB-denominated services is growing, not only in traditional import-export trade, but also in emerging trade models.
The solution therefore aims to help corporate customers seize opportunities arising from economic and trade recovery and support their growth globally. As of the end of June, BOCHK’s RMB trade finance volume had grown nearly 30 per cent compared to the same period in 2024.
The four core aspects of the Series include e-commerce, commodity trading, “Made in China” going global and the Belt and Road Initiative.
For cross-border e-commerce, BOCHK provides fully digital RMB service solution, which integrates collection, FX and cash management tools, to support the emerging trade models.
In commodity trading sector, where both volumes and ticket sizes are substantial, BOCHK offers full-chain RMB solutions tailored to the needs of clients in energy, raw materials and metals.
RMB trade finance volumes in these segments have continued to grow, underpinned by the appeal of lower interest rates and reduced exchange rate risk relative to other currencies.
To facilitate the global expansion of “Made in China” products, particularly in the automotive sector, BOCHK supports overseas expansion with RMB solutions that cover the entire operational chain.
These include services for local plant investment, dealer network development, and direct-to-consumer brand operations, aligning with national initiatives to promote the “New Trio” exports including electric vehicles, lithium-ion batteries and photovoltaic products.
As for the Belt and Road Initiative, BOCHK is actively expanding the offshore RMB ecosystem by offering tailored RMB solutions in Southeast Asia.
These services encompass trade finance, guarantees, RMB deposits and remittances, as well as local currency exchange, all designed to facilitate seamless integration of RMB into cross-border business operations.
Empowering decarbonisation through green RMB finance
To meet the sustainable development needs of Hong Kong, the Greater Bay Area and Southeast Asia, BOCHK provides a wide range of green and sustainable financial products, as well as funding solutions for green and sustainable projects and enterprises engaged in low-carbon transformation.
The Bank supports enterprises in their green project investment through green loans and provides sustainability-linked loans (“SLLs”) to help them set and achieve carbon reduction targets. A landmark transaction includes the RMB 4.5 billion five-year sustainability-linked loan arranged for Shangri-La Asia, the largest RMB SLL of the group at the time.
This facility is tied to ESG targets such as employee injury rate, energy intensity, carbon intensity, water intensity and single-use plastic reduction efforts, with an interest rate adjustment mechanism when targets are met.
The loan also offers flexibility in RMB, USD, and HKD, highlighting BOCHK’s cross-currency capabilities and its role as a trusted partner in supporting the sustainable development strategy of corporate clients.
Furthermore, BOCHK has engaged in several landmark offshore RMB bond issuances. In 2024 alone, it assisted in issuing multiple types of sustainability-related offshore RMB government bonds in Hong Kong, including the Hainan Provincial Government for the third consecutive year, the Shenzhen Municipal Government for the fourth consecutive year, and the Guangdong Provincial Government for the first time.
The proceeds from these bonds are allocated to environmental and social projects, spanning urban infrastructure, education and healthcare, environmental protection, and marine conservation.
Through its green RMB financing solutions, including green loans, SLLs and bond issuances, BOCHK is dedicated to supporting the decarbonisation goals of both corporations and governments.
The Bank’s strategic efforts aim to foster the development of green finance markets, expand sustainable investment avenues, while reinforcing the role of RMB in global environmental finance.
BOCHK will remain committed to unwaveringly supporting the high-quality Belt and Road cooperation by pushing forward the development of its RMB business, accelerating uptake of RMB in settlement, pricing and financing, particularly across green infrastructure and international supply chain financing.